Trump's America is becoming a 'rogue nation' — and the world can make us suffer: economist

Nobel Prize-winning economist Paul Krugman argues that President Donald Trump is turning the United States of America into a "rogue nation," and he says that the rest of the world is actually well positioned to make the country pay.

Writing on his Substack page, Krugman argues that "becoming a nation that can’t be trusted to honor agreements or follow the rule of law has to have monetary as well as political and diplomatic consequences."

What's more, he writes, the way the American economy is structured leaves "exposure to foreign revulsion" looming "quite large."

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In particular, Krugman thinks that American allies will drastically pull back on their purchases of American-made military equipment now that they no longer trust the nation under Trump to serve as an "arsenal for democracy."

Krugman also thinks that America's higher education system, which has long been one of its greatest assets by attracting some of the brightest minds throughout the world, is also set to crater.

Added to this, stories about the Trump administration detaining even lawful permanent residents and deporting them will keep tourists out of the country for the foreseeable future.

"Trump’s belief that America holds all the cards, that the rest of the world needs access to our markets but we don’t need them, is all wrong," he concludes. "We are rapidly losing the world’s trust, and part of the cost will be financial."